Motor Vehicle Dealer Bond Cost
Colorado car dealer surety bonds are required by the Colorado Motor Vehicle Dealer Board and must be in the amount of $50,000. Don’t let poor credit stop you from getting the bond you need! Surety Bonds offers an exclusive bad credit bonding program through which we approve 99% of applicants.
Why this bond
Colorado motor vehicle bonds guarantee that principals (motor vehicle dealers, power sports vehicle dealers, used motor vehicle dealers, used powersports vehicle dealers, wholesalers and wholesale motor vehicle auction-dealers) comply with the terms listed in 12-6-111(1) and 12-6-512(1) of the Colorado Revised Statutes during the term of the business license. Specifically, this bond prevents fraud and fraudulent representation at the hands of the principal.
Recovery under this bond is limited to the parties and priorities described in Colorado Revised Statutes 12-6-111(2)(a) and 12-6-512(2)(a) and is subject to the requirements of Colorado Revised Statutes 12-6-111(2)(b) and 12-6-512(2)(b).
Motor vehicle dealer bond details
Colorado motor vehicle dealer bonds can be continued from year-to-year with the issuance of a proper continuation certificate from the surety. This certificate must be delivered to the Director of Revenue. The surety can cancel the bond at any time by filing 45 days’ written notice of such cancellation with the vehicle dealer and the Director of the Department of Revenue. If, however, cancellation is based upon nonpayment of premium, this bond may be canceled by the surety upon 10 days’ written notice to the dealer and the director.
The applicant must indicate one of the following dealer types on the bond application:
- Motor vehicle dealer
- Used motor vehicle dealer
- Powersports vehicle dealer
- Used powersports vehicle dealer
- Wholesale motor vehicle auction-dealer
Become a vehicle dealer
A vehicle dealer in the state of Colorado is defined as a person who sells or leases 3 vehicles from the same address during the cycle of one calendar year with the intent to make a profit. These professionals must obtain a license issued by the Colorado Motor Vehicle Dealer Board (MVDB). Applicants must do the following to qualify for a license:
- Submit all required forms of the application
- Pay all appropriate licensing fees
- Provide proof of a sales tax license
- Post the proper surety bond
- Meet the minimum net worth requirements
- Furnish a credit report as well as a background check
- And more
More licensing information can be accessed from the Additional information section of this page.
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- Bond of Motor Vehicle Dealer, Powersports Vehicle Dealer, Used Motor Vehicle Dealer, Used Powersports Vehicle Dealer, Wholesaler, or Wholesale Motor Vehicle Auction-Dealer form
- Colorado Department of Revenue Dealer/Wholesaler Licensing
- Colorado Statutes and Regulations for the Powersports Industry
- Colorado House Bill 07-1081
- Colorado General Assembly Session Laws of Colorado 2007 First Regular Session, 66th General Assembly Chapter 363 Professions and Occupations